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(a) Climate cost \(C_{FB}(G)\) |
(b) Dynamics of GHG stock |
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(c) Adaptation and mitigation funding levels |
(d) Adaptation and mitigation funding shares |
Figure 1. First-best benchmarks. Author’s own elaboration.
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(a) Difference in climate cost, \(C(w_t,G_t)-C_{FB}(G_t)\) |
(b) Difference in GHG stock, \(G_{SB,t}-G_{FB,t}\) |
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(c) Promised contribution value, \(w_t\) |
(d) Total funding, \(I_t\) |
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(e) Adaptation funding, \(a_t\) |
(f) Mitigation funding, \(m_t\) |
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(g) Adaptation share, \(a_t/I_t\) |
(h) Mitigation share, \(m_t/I_t\) |
Figure 2. Comparison of dynamics under the first-best and the second-best (SB) contract for \(\rho\in\{0.80, 0.85, 0.90, 0.95, 1.00\}\), with initial total funding set to \(8\%\) of the first-best level in 2015. Author’s own elaboration.